Payroll by nature itself is very sensitive subject. Besides, it is near & dear to everyone. An employee (across the class, category and industry) is concern about accuracy and timely disbursement of his take home salary, where as employer is concern about payroll cost, accounting, allocation, & outflow. On top of it, compliance of statutory provisions is mandatory, as they are enacted by the Government.

Therefore, payroll desk is always very demanding. Hence qualities such as positive attitude, honesty, sincerity and character of strength are pre requisite.

Basic Concepts of payroll

Payroll flows from written or implied employment contract and concluded eventually upon termination of contract. Apart from contractual aspect, compliance of statutory obligations are not matter of choice, as they are enforced by Government and any non-compliance would lead up to criminal proceedings against the employer.

Broadly one can divide payroll in to three components, which are generic and integral part of any payroll across the world:

• Basic information about employees
• Earnings and reimbursements
• Deduction and recoveries

Know your employees

Being a payroll executive one has to deal with employees and success is gauged on how intimate relationship one has developed with employees.
It is privilege of payroll executive to have an access to personal information of employees, which is essential for compliance of statutory provisions and generating various reports.
However, by maintaining at most confidentiality, a competent payroll executive may know employees better than merely gathering data base of personal information of employees.
Bottom line is we deal with people and winning their confidence will position you as their close friend.

Earning and Reimbursement

Earning and Reimbursement is generic description of compensation payable to employee.

Please appreciate that amount of compensation is defined by the contract and varies with employee to employee based on their skill set. Similarly salary structure followed by two entities in same industry need not be identical. However, some of the components are driven by statutory provisions and hence there is uniformity. .This is one of the peculiarities of payroll.

Deduction and Recoveries

This is most sensitive part from employee's perspective and one has to deal with kid's gloves.

At the same time, compliance of statutory provisions is obligatory and one must ensure strict compliance, irrespective of likes or dislike of employees or employer. Being a payroll executive you are supposed to quantify statutory dues, based on prevailing statutory provision. Therefore, you need to understand not only provision but also the basis of computation.

Among all the statutory provision, provisions enacted by Union / Central Government are important as the applicable across the country (barring state of Jammu & Kashmir), where as few statutory provision / rules and enacted by State Governments.

We will deal with this in detail at appropriate time; however let us review history of important statutory provisions enacted by Union / Central Government.

Important Statutory Provisions

Out of various statutory provisions, Income Tax Act 1961, Employee's Provident Fund and Miscellaneous Provisions Act 1952, (barring state of Jammu & Kashmir) and Employee State Insurance Act 1948 are important enactments by Union / Central Government and applicable across the country.

Our highly process driven and secure payroll solution is best suited for the small and medium enterprises. It brings you the benefits of full-fledged payroll solutions without maintaining a department specifically for the purpose at your company. The Payroll solutions to service & non-service Industries which we provide includes:-

• Monthly payroll processing.
• We generate computerized payroll package from data, received from company.
• TDS and other statutory compliance computation.
• Pay slip generation for each employee.
• Management Information System (MIS) reports as per client requests.
• Payroll query management.
• Filing of PF, IT, PT and ESI.
• Web based access of employee self-service.